Tesla beats VW, now the world’s number 2 carmaker

Published On : 03 February 2020
By Tarashekhar Padhy

Tesla has outscored Volkswagen as the world's second most valuable automaker behind Toyota because the steep rise in the US EV maker's shares travels the global market.

Tesla's stocks have doubled in worth within the last quarter, with its market capitalization surpassing US$100 billion last week, a first for a registered US carmaker.

During the rally, its value has leapfrogged skilled global rivals: Honda, BMW, General Motors and Daimler. On Wednesday, it eclipsed VW's $99.4 billion value.

Toyota still holds the top position with a market cap of $233 billion.

The recent gains are fueled by a surprise third-quarter profit, progress at a replacement factory in China and better-than-expected car deliveries within the fourth quarter.

Many investors remain skeptical that Tesla can consistently deliver profit, income, and growth.

But the gains highlight growing confidence among investors about the longer term of electrical vehicles and Tesla's shift from a distinct segment car maker into a worldwide leader in cleaner cars.

A glance at its results shows it's an extended thanks to going before it can eclipse larger rivals.

As per annual forward business estimates, it isn't even in the range of the top 20 within the world. The automaker's sales worth will touch only US$31 billion, a slice of Toyota's whopping $276 billion, VW's $283 billion and Daimler's $191 billion, confirmed by Refinitiv data, a commercial analyst organization.